Sep. 24: LO, AE, corres. jobs; broker, DTC products; conventional conforming news incl. Wells’ LTV change; USAA layoffs

 

We’re now officially in autumn, one week left in the 3rd quarter. Most states in the U.S. don’t change their clocks until November 4th, but in Europe they are doing in 2019 what many in this country wish the government would do: end changing clocks at all. Why can’t the U.S. be so sensible? Speaking of “sensible,” do the summer interns of Goldman Sachs represent that entire age group, or are they different? (“Everyone’s above average on our team!”) Here’s an easy to read survey showing their values, where time is spent, and how much they’d pony up for avocado toast.

Jobs, promotions, layoffs

Fresh off a record August surpassing $250M in non-QM origination, Angel Oak is continuing its extraordinary growth. More and more brokers and correspondents are realizing the power of non-QM and the benefit of working with the leader in this space, Angel Oak Mortgage Solutions. Primed to continue setting record volumes, AOMS is looking for new Account Executives in markets across the country to help brokers and correspondents grow their business. Why work with anyone but the best? To learn more, view the latest job openings on the Careers Page or email Regional Sales Manager, John Wise.

 

Nations Lendinga privately-owned mortgage lender headquartered in Independence, Ohio, is celebrating its 15-year anniversary this month.  Nations Lending has announced Craig Bobroy has been promoted to Senior Managing Director/Head of Capital Markets. Bobroy’s promotion enables him to continue strengthening the lender’s secondary marketing capabilities. “Craig is an asset to our organization and our commitment for growth,” affirmed CEO Jeremy Sopko. Nations Lending also welcomes Sam Asher who joined as the HR and Talent Acquisition Manager. In the last 6 months Nations Lending has been recognized as a Top Lender by Scotsman Guide, Mortgage Executive Magazine, National Professional Mortgage Magazine, and added to the prestigious Inc5000 List. For more information and opportunity on how to join our growing organization, please visit the company’s website. 

NMI Holdings, Inc. announced that Claudia Merkle, the company’s current President, will succeed Bradley Shuster as Chief Executive Officer on 1/1/19. Mr. Shuster, the company’s founder, Chairman and CEO isn’t wandering off into the sunset as he will continue as Executive Chairman, leading the Board, working on special projects, and working closely with Ms. Merkle as CEO. As CEO, Claudia Merkle will be responsible for the company’s day-to-day management, financial performance and long-term growth strategy. And congrats to Christina Bartning, VP of Marketing and Client Solutions, who won the HW Insiders Award. Christina has led National MI’s communication channels for over 5 years and has played an imperative role in several product launches including the newest Rate GPS launch.

In November USAA is eliminating roughly 110 positions in San Antonio in the Real Estate Lending and Real Estate Rewards Network field, and also lay off an additional 155 employees in the same divisions in Tampa and Phoenix.

Lender products and services

The ACES Risk Management (ARMCO) website has a fresh new look! “’The impetus to update the website was to help our clients and prospects gain a deeper understanding of the ARMCO mission and what sets us apart from the rest,’ says Romina Cusenza, VP of Marketing. Watch videos of ARMCO clients talking about their experience with using the ACES Audit Technology platform and working with the ARMCO team. Come experience the new ARMCO – Lend us your ear!”

“Looking to stay competitive in today’s tight market? Choose a partner who makes the mortgage process more efficient for you and offers you fast turn times and unique products to give you a competitive edge. At TMS Wholesale, we’re dedicated to helping Grow Happiness for our broker partners to help you build stronger, long-term relationships. We’re excited to announce an 11-day Purchase guarantee on Conventional loan closings to help you maintain and gain purchase business in your local market. In addition to this, we increased the LTV on our industry-leading Pink Select Program from 80% LTV to 90%, so you can best serve your borrowers with an expanded LTV. Can your current lender guarantee this fast of a close and commit to these amazing prices? If not, learn more about TMS and contact James Hooper, SVP Wholesale, or visit our website.”

 

Momentifi CEO Gibran Nicholas is providing a free recording of his webinar series for loan originators: How to Build a $1mm/year Loan Origination Business Without Buying Leads, Chasing Realtors, or Asking Your Company for MoneyClick here to sign up. Separately, Gibran is conducting an executive briefing this Wednesday for CEOs, executives and sales managers: How to Create Massive Company-Wide Sales Growth, Earn 10x ROI on Your CRM Investment, and Transform Your Sales Managers into More Effective Sales Coaches (all in the next 90 days). “Most sales managers were top producers who were thrown into their current role without any formal training as sales leaders,” says Gibran. “This executive briefing will show you how to drive sales growth and become a more effective sales coach by using two key metrics available in most CRMs.” Click here to sign up for the executive briefing, and you’ll also receive a free recording.

 

BBM specializes in VA & FHA Direct to Consumer Marketing. “We’re skilled in using credit data modeling to identify FHA & VA borrowers who are actively in the market and would like to have you compete for their business. As experts in origination marketing we focus on revenue and profitability, not units. Our average loan amount for active FHA/VA applications exceed $350K and a net revenue after marketing of nearly $13,000. If your marketing is not reaching these levels of performance than let our data experts show you how a targeted marketing strategy focused on revenue can change the trajectory of your company.” For more information about BBM Marketing Services and about becoming an approved origination partner; please contact Bill Senteno or visit BBM.

 

How can you stay competitive in today’s rising rate environment? “As a mortgage professional, you know that a home is the single biggest investment most Americans will make, and costly mortgage interest is the biggest obstruction to saving for future goals. The All In One Loan by CMG Financial combines banking and mortgage financing into one dynamic instrument to help homeowners reduce the cost of mortgage interest and free up their finances for retirement savings and unexpected costs. Earn your clients’ business for life by offering something that is truly revolutionary. CMG Financial’s Wholesale Division continues its cross-country seminar series to introduce mortgage professionals and their referral partners to the All In One LoanTM. Join us in Orlando, FL on October 9th. To see the schedule of training events and webinars visit: http://cmgfi.com/wholesale/aio or email AIO@cmgfi.com.”

“There has been one constant problem in the mortgage industry that has existed for decades, ‘incomplete and/or inaccurate’ loan applications. For the past 3 years PerfectLO has been the leader in the POS space. Its unique approach and design are like no other. ‘Why?’ Because the ownership speaks ‘mortgage,’ not ‘code.’ It systematically takes a Perfect Loan Application that has built in intelligence that ‘digs’ in and asks all the questions that ‘live’ inside and outside the ‘1003.’ PerfectLO creates a ‘spot on’ doc checklist based off their answers and offers a secure upload. A smart non-intimidating interview that allows both borrower facing or LO facing. Easy to adopt and onboard. PerfectLO works in every language, talks to all LOSs, SMS milestone updates, borrower dashboard and more. Own your data and manage your pipeline! Let us replace your ‘Apply Now’ button today.  Sign up for a free trial and demo.”

Fannie & Freddie, lender & investor conforming conventional news

Sure, it has been ten years of conservatorship, and sure Congress won’t take a firm stand on doing anything about the Agencies (especially when they’re sending billions of dollars toward the U.S. Government), but that won’t stop F&F from turning heads in the primary and secondary markets.

For example, Fannie’s new high loan-to-value (LTV) refinance option is now included in the Selling Guide (Announcement SEL-2018-06). To support this new option, Fannie’s trading desk will update six product names in Pricing & Execution – Whole Loan® effective Oct. 29. Review the product names changes.

The Agencies are not free from controversy. Stockholders anxiously await them leaving the government’s bosom. In his Sunday newsletter consultant Joe Garrett wrote, “There’s talk of firing Fannie Mae CEO Tim Mayopoulos for not properly disclosing that he was dating someone who worked there. Is that fair? Should the rules be different for the CEO than everyone else? We’ll leave that up to you, but we think CEOs must set the ethical tone for an organization, and while there’s probably nothing wrong with dating someone (as long as he or she doesn’t work directly for the CEO), it causes people to gossip, and a CEO doesn’t need people gossiping about his or her personal life.”

And a reader wrote, “Nice to see these organizations speak up on this issue given the increasing pressure on Watt to resign.

Freddie Mac recently announced adding Section 5103.8 of the Guide. It explains how to submit loan information in Loan Product Advisor® when a borrower is considered an occupying borrower, if a property is occupied as the primary residence by an individual(s) that is the borrower’s parent or disabled child.

Recent selling requirement changes were issued in Freddie Mac’s Guide Bulletin 2018-15. Changes include updates requirements for authorized user accounts, revised requirements for super conforming mortgages, updates eligibility requirements for automated cash payups and removes special delivery requirements, and updates self-employment income requirements.

Wells Fargo Funding has expanded its maximum TLTV/CLTV to 105% for Loans submitted through Fannie Mae Desktop Underwriter (DU) as follows: High Balance Conforming Loan Program – Prior Approval: One- to four-unit property, Fixed rate, Primary residence, Purchase or rate/term refinance, secondary financing is a qualified community second. Conventional conforming – Prior Approval: Three- to four-unit property (one- to two-unit properties are already eligible up to 105% TLTV/CLTV), Fixed rate, Primary residence, Purchase or rate/term refinance and Secondary financing is a qualified community second.

The credit score requirement for the Ditech-Paid LPMI Fannie Mae and Freddie Mac products have been updated for investment property purchase and rate and term transactions from 720 to 620, within program guidelines. Also. LPA transactions will now be offered on the LPMI Fannie Mae High Balance Fixed product.

Effective September 26th, Franklin American Mortgage Company’s FNMA seller servicer number will be deactivated. As a result, any UCD files being transferred or assigned to FAMC must instead be transferred or assigned to Citizens Bank, N.A. As a reminder, the transfer or assignment of the UCD file will continue to be required prior to purchase on those loans where the UCD file is submitted to only one agency.

Plaza has simplified its program offering and consolidated the Fannie Mae and Freddie Mac Retained programs into its other existing programs. All of the great features of the Retained programs are now be available in its updated Conforming Fixed and High Balance Fixed programs, and the Retained programs are discontinued as of September 11, 2018. Locked loans will not be affected, and registered, unlocked loans have been moved to the Conforming Fixed or High Balance programs.

Capital markets

On Wednesday, the Fed is expected to hike rates 25bp (or perhaps 20bp depending on which end of the corridor, like the June hike) and tilt hawkish. Growth, unemployment and inflation all suggest an upward shift at the lower end of rate projections. Chairman Powell has been exploring several ways to further overhaul how the Fed gets its message out to the public. Some include adjusting the package of economic forecasts that Fed policy makers submit each quarter or identifying the policy maker behind each dot.

Rates were quiet on Friday ahead of this week’s FOMC events, with headlines revolving around British Prime Minister Theresa May saying the U.K. and European Union were “at an impasse” on Brexit. European Council President Donald Tusk said May’s Chequers plan shows an evolution but remains insufficient. Prime Minister May said the UK does not plan to change its approach. Across the Pacific, Fitch lowered China’s 2019 growth forecast to 6.1% from 6.3%. Separately, Japan’s Prime Minister Shinzo Abe met with President Trump on Sunday.

This morning we’ve had the Chicago Fed National Activity Index for August (unchanged) and coming up is the Dallas Fed Manufacturing Business Index for September – not a big market mover. Tomorrow we have the FHFA House Price Index, S&P CoreLogic Case Shiller numbers, and Consumer Confidence. Wednesday is the MBA apps data from last week, New Home Sales, and the FOMC rate decision. Thursday is the usual initial jobless claims but also some trade balance figures, GDP, and Durable Goods. We finish off the week with Personal Income and Consumption, some Personal Consumption Expenditure figures, and University of Michigan numbers. We start the week with rates higher than Friday evening: the 10-year is yielding 3.07% and 30-year Agency MBS prices are slightly worse.

I know I usually have a joke in my daily commentary. But this is a more serious note.

I want everyone to say a prayer for me today.

I must go in and talk to the bank today, and if all goes well, there are millions of dollars at stake here.

I cannot wait to be free of debt! I am so excited that I can barely get my ski mask over my head.

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. The current blog is, “The Rise of the Credit Unions.” If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.

Rob

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are over 300 mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2018 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)

Rob Chrisman